But, in the common parlance, the whole concept of insurance appears blurry and appears to be full of hassles and paperwork. An important insurance is no doubt the life insurance, but for more security to your family and loved ones after your death is the mortgage life insurance.
Let us try to first understand the concept of mortgage life insurance.
The concept of mortgage life insurance
We don’t really ask ourselves these questions normally. What if we die tomorrow? Will our family have enough money to strive on? Okay let us assume there is a life insurance, therefore our family will get a lump sum amount of money.
But, what if in case we have a mortgage in our name? Who will pay for that? In such cases there is an option called mortgage life insurance.
According to this insurance, an amount of money will be paid to your family at a chosen time, and it generally matches the time of the mortgage. If you have an untimely death, during the term of the policy, a tax free decreasing sum will be given to your family as a lump sum. So, the mortgage will also be taken care of and you get a tax free amount.
This policy is also applicable if you are unable to work, owing to any physical ailment.
But, there is a cons of this policy too. If your death occurs outside the terms of the policy or the policy ending time ends with the complete repayment of your mortgages, then no money will be shelled out to your family. There is no system of returns on the premium.
Benefits of mortgage life insurance
- Provides peace of mind to your family- This is the best insurance policy for your family, if you have loans in your names. With this insurance, your family will be secure and at the same time, will have peace of mind, that in future if you die or is unable to work, the loans or the mortgages will be taken care of.
- You can get the benefits even if you are alive- Unlike, the general life insurance, where your family will not get the benefit unless you die, mortgage life insurance is a more flexible option. If you die, your family will get the money as well as the mortgages will be taken care of. But, if you are alive and is unable to work due to any reason, this particular insurance will apply in such cases too.
So, it is better to get a mortgage life insurance for you and your family today. Hire professionals to help you in this respect. They know and have expertise in this field. Their mortgage calculators re professional and will help you better. Hence, they will give you better solutions to your insurance needs.
Though there are a few disadvantages of this insurance, yet the two main advantages takes the cup. It is necessary to take precaution with such a policy and secure your family’s future. So, what are you waiting for? Go and talk to your insurance policy professional and have a mortgage life insurance of your own.